Data Center Data Watch; Options Thoughts; Today‘s News: US Hardware / Semiconductors Sector Specialist Commentary Hardware • Semiconductors

Research evidence excerpt

Data Center Data Watch; Options Thoughts; Today‘s News: US Hardware / Semiconductors Sector Specialist Commentary Hardware • Semiconductors

Joshua Meyers - Specialist Sales - US TMT AC (1-617) 310 0767 North America Specialist Sales J P M O R G A Njoshua.meyers@jpmorgan.com

J.P. Morgan Securities LLC 01 July 2026

lower, too. Cyclicals are under pressure with HC and Staples leading a Defensives bid.

EU/UK: Major markets are mostly lower with Germany leading and France / Spain lagging. Regional yields are higher despite

Eurozone inflation printing dovishly. Defense, Semis, Renewables are among the top performers so far with the market selling

Tradition Energy and Luxury. Thematically, Vol / ResVol is leading, Value / Size is lagging; Cyclicals over Defensives. APAC

was mixed, led by Japan / Taiwan with Korea among the biggest laggards. UKX -0.1%, SX5E -0.1%, SXXP -0.1%, DAX +0.3%.

CSI -0.4%, HSI -0.6%, NKY +0.6%, ASX -0.6%, KOSPI -2.0%.

News & Reads

• TokenBudgeting: Our Conversations with Enterprises on Token Spend. Enterprise “tokenmaxxing” headlines (Meta,

Uber) are outliers, not the norm. Based on 50+ enterprise conversations, budgeting is now standard practice, but spend is still

growing steadily — no material risk to 2H26 AI revenue for frontier model-makers. Indeed, the top customers (90th+

percentile) drive most API revenue, and with low risk of cutting spend (99th percentile customers spend ~$90k/employee/

year; 90th percentile ~$7,300; median customer just $136). Customers are conserving tokens by down-switching default

models, disabling premium tiers (e.g. fast mode) and using unlimited M365 Copilot for drafting/brainstorming before

switching to metered tools for final work. The team lists clear ROI wins (specifically highlighting AMZN and data/analytics